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Following Cabinet approval, the Electricity Company of Ghana (ECG) has implemented a new system to assist the utility with revenue distribution.

The utility has failed to collect an estimated 20% of customer bills, which makes paying other service providers in the chain a challenge, according to the energy ministry.

Prime News Ghana reported that “the inability of the ECG to collect appropriate revenue for power consumed and pay its creditors led to a substantial debt of $2.4 billion last year.”

Revenue distribution system

Dubbed the Cash Waterfall Mechanism System, it is expected to be carried out across the country, which will see the development of a formula, for adequate distribution of revenue to all stakeholders in the power sector, Prime News Ghana reported.

According to media, this is expected to mitigate situations where some power producers are given priority during payments which adversely affect the revenue of ECG.

The Energy Minister has also ordered the ECG to rollout prepaid meters to 95% of customers as a long-term solution to the challenge.

Renewable expansion plans

In earlier news, efforts to boost power generation through clean energy projects are well underway.

Global energy company ENGIE signed a joint development agreement with eleQtra last month for the development and construction of the 50MW Ada wind power project in the Greater Accra Region, Ghana.

According to a company statement, the project is expected to require an investment of approximately $120 million and to start operations early 2019.

ENGIE explained that the project was initiated by eleQtra Limited, the developer of power and transportation projects in sub-Saharan Africa.

The energy company also declared that initial studies have already been completed, demonstrating the project’s viability.


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